Europe Markets

Bulls return; Europe closes higher; DAX shines

European market closes higher

European markets closed higher on Monday, boosted by waning geopolitical fears and a continued upturn on Wall Street.

The U.K. benchmark FTSE 100 and the French CAC 40 closed unofficially higher by 1.1 percent and 1.3 percent respectively. The Germany DAX index outperformed, unofficially closing up 2.0 percent.

The Spanish IBEX and the Italian FTSE MIB closed up 0.9 percent and 1.4 percent respectively.

Investors were reassured on Monday by signals that Moscow would not send troops into Ukraine, which looks set to retake the city of Donetsk. Ukrainian military forces have made significant gains that have divided pro-Russia rebel forces.

Meanwhile, President Vladimir Putin said Russia was coordinating with the International Red Cross to send humanitarian aid to Ukraine.

Regarding Iraq, President Barack Obama said on Saturday that U.S. airstrikes had already destroyed arms that could have been used by Islamic State militants. This boosted U.S. stocks on Monday, even though Obama did warn that there would be no "quick fix" to the crisis.

In stocks news, shares of Banco Popolare closed up 8.2 percent, topping the FTSE MIB. The Italian bank reported stronger-than-expected quarterly results and was upgraded by Exane BNP Paribas to "outperform" from "neutral".

Meanwhile, shares in Bilfinger closed 4.2 percent higher after the builder said it expected a "significantly" stronger second half of 2014.

Shares in Balfour Beatty ended around 2.4 percent higher, after the group rejected a revised takeover proposal from Carillion.

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